As the first anniversary of demonetisation nears, the Finance Ministry said the exercise had helped in flushing out black money, eliminate fake notes and reduce the circulation of cash.
The total currency in circulation had come down to Rs 14.75 lakh crore as of August 4, 2017, from Rs 17.77 lakh crore, the finance ministry tweeted. “Only 83 per cent is the effective currency in circulation today with remonetisation,” the ministry said.
Prime Minister Narendra Modi in a surprise move had announced the withdrawal of Rs 500 and Rs 1,000 notes with effect from November 9, 2016. Detailing other benefits of demonetisation, the ministry said it had dealt a big blow to the financing of terrorism and Left-wing extremism.
Besides, it has helped in expanding the tax base, converting non-formal economy into a formal one and making money accountable. It has provided a big boost to digitisation of payments, making India a less-cash economy, it said.
During September, Rs 1.24 lakh crore worth of transactions were done through the digital mode. The number of transactions was 87.7 crore.
The ruling BJP has decided to celebrate the first anniversary of demonetisation on November 8. This will see Union ministers and BJP office-bearers across the country build public opinion in favour of the government’s decision. However, the opposition has decided to celebrate it as a “black day”.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines